Restrictions on powers

7-49-107. Restrictions on powers. (1) The powers of the corporation shall be subject to the following restrictions: (a) It shall not approve any application for a loan until the applicant has shown that the applicant has applied to two or more financial institutions that could lawfully lend the amount of money sought and that the financial institutions have refused in writing to make the requested loan or would only make such loan under conditions substantially different from the prevailing rates and conditions available to persons borrowing for the purchase or remodeling of newer homes; (b) It shall not give security for any loan made unless all loans are secured ratably in proportion to unpaid balances due. (2) Nothing in this article shall be construed to empower the board of directors to adopt rules or regulations that are inconsistent with federal law governing financial institutions or any federal rules or regulations promulgated pursuant to such federal law. Source: L. 75: Entire article added, p. 266, � 1, effective June 29. L. 2003: (2) amended, p. 2210, � 35, effective July 1, 2004. L. 2004: (1)(a) amended, p. 1404, � 19, effective July 1.